Question

Exercise 7-7 Blossom Companyhas delivery equipment that cost $57,000 and has been depreciated $23,600. Prepare a tabular summary to record the disposal under the following assumptions. Your answer is partially correct. Try again. It was scrapped as having no value. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets = Liabilities + Stockholders' Equity Retained Earnings Revenue - Expense - Cash + Equipment - Accum. Depr. - Equip. = + Common Stock + Dividend 57,000 23,600 U 57,000 -23,600 33,400 Loss on disposal
You can see where I need help with in red

Answer 1

Answers

--You have to enter certain amount as NEGATIVE amounts.

• [1]

	Cash	Equipment	Accum Depr Equip	Common Stock	Revenue	Expenses	Dividends
Bal		$57,000	($23,600)
		($57,000)	$23,600			($33,400)		Loss on disposal

• [2]

	Cash	Equipment	Accum Depr Equip	Common Stock	Revenue	Expenses	Dividends
Bal		$57,000	($23,600)
	$37,300	($57,000)	$23,600		$3,900			Gain on disposal

• [3]

	Cash	Equipment	Accum Depr Equip	Common Stock	Revenue	Expenses	Dividends
Bal		$57,000	($23,600)
	$18,300	($57,000)	$23,600			($15,100)		Loss on disposal